The Modes And Risk Analysis Of Commercial Bank's Financial Leasing Business

The financial leasing industry has developed rapidly in China.Among them,financial leasing companies,as non-bank financial institutions,have played an important role in the financial industry.With the development of the domestic economy,the role of financial leasing will become more prominent and promote social and economic development.Commercial banks are increasingly competitive in the traditional business.Faced with internal and external competition,commercial banks should make full use of their own advantages and combine the financial leasing industry with huge development space to develop their own characteristics and enhance their competitiveness.This paper focuses on the definition,classification and historical evolution of China's financial leasing,highlights the development status of financial leasing,and analyzes the two modes of commercial banks participating in financial leasing.At present,there are two main ways in which commercial banks participate in the financial leasing process: one is the establishment of a financial leasing subsidiary for the purpose of self-operated leasing;The other is for banks and leasing companies to cooperate by providing financing or customers.At the same time as the cross-industry development of the banking industry,the cross-transitive nature of risk will be enhanced,so the risk of commercial banks in the two modes will be further explored.Through the case of China Merchants Bank,the paper analyzes the two models of China Merchants Bank,analyzes the risk of CMB financial leasing company by factor analysis,and analyzes the risks of China Merchants Bank's cooperation with financial leasing company through financial analysis and stress test.Based on the experience of China Merchants Bank in participating in the financial leasing business,it proposes countermeasures that will help commercial banks to develop financial leasing business.Through the analysis of the two financing leasing business modes and risks of China Merchants Bank,this paper believes that for the bank financial leasing companies to establish a correct business philosophy,they cannot rely solely on the parent bank and should take the differential development path.For cooperating with leasing company mode,the bank should rationally choose the type of credit,and actively strengthen the information exchange with the lessee.In both modes,the number of participating business entities is relatively large,and the fields involved are also extensive,so the difficulty level of risk identification and risk analysis also increases.The accelerating potential risks are already inevitable for such businesses,and it is crucial for commercial banks to take risks to prevent them.Bank financial leasing companies must have a good corporate governance structure,take legal and compliance approvals for corporate business projects,innovate business models,and establish an effective risk control system.For cooperating with leasing company,Commercial banks should conduct risk isolation on assets such as leased materials and strengthen the review of projects.